The book profit of investing in these two companies alone exceeds 10 billion.
Editor’s note: This article is from the micro-channel public number “China Fund Report” (ID: chinafundnews) , Author: Amman.
An online lending platform with a valuation of over 260 billion yuan—Lufax, on the first day of listing I broke my hair…
It is said that internationally renowned investment institutions participating in the C round of financing have lost at least 20%. Ping An Group and Ping An’s management became the biggest winner, as well as a mysterious Hong Kong rich man.
The fund manager carefully checked the investment of this mysterious Hong Kong rich man. He not only deployed Lufax under Ping An Group, but also invested in Ping An Good Doctor, which was listed in 2018. The book profit of investing in these two companies alone exceeds 10 billion.
Lufax “20% off” listedBreak on the day of listing
Lufax, which started with P2P, was once considered to be a representative of financial technology innovation that can compete with Ant Financial.
However, with the tightening of policies in 2018, Lufax has been struggling with the rumors of “explosion” and “non-explosion”. However, at its peak, Lufax completed the C round Financing, the main investors include Qatar’s sovereign fund Qatar Investment Authority (QIA), Hong Kong Quan Ming Star Investment Fund, Chunhua Capital and Japanese financial company SBI Holdings have a post-investment valuation of US$39.4 billion.
With this kind of valuation, in January this year, Hurun released the “2019 Hurun Top 500 Private Enterprises in China”, and Lujin ranked 18th with a valuation of 270 billion yuan (about 40.4 billion US dollars).
Who ever thought that when it came to the capital market, the situation was shocking.
On October 30, Lujin was listed on the New York Stock Exchange with an issue price of $13.5/ADS. According to this issue price, Lufax’s IPO raised funds of US$2.36 billion (without green shoes), and its market value after listing was US$33 billion. This is only a 20% discount of the $40.4 billion valuation in January this year, and it is also far below the valuation of the Series C financing.
Lufax, which was listed at a 20% discount, did not get a low opening of US$11.6 on the first day of market listing, a 15.6% drop from the issue price. However, it recovered slightly afterwards and closed at US$12.85/ADS on the first day, which was lower than the issue price. 4.81%, the current total market value is 31.3 billion US dollars.
This also means that, based on the current market value, investors participating in Series C financing have a book loss of at least 20%.
55-year-old Hong Kong tycoon earns more than 6 billion yuan
According to the prospectus, Ping An Group and Ping An’s executive shareholding platform hold 42.3% and 42.7% of Lufax respectively. According to the current market value, the market value reaches 13.2 billion US dollars and 13.3 billion US dollars respectively.
Interestingly, in Lufax’s board of directors, only one person holds a single share-director Eddie Siu Wah Law.
Who is Eddie Siu Wah Law?
According to public information, Eddie Siu Wah Law, whose Chinese name is Luo Zhaohua, is 55 years old and is currently the chairman of Zhenghe Capital Management Co., Ltd. and has served as a director of Lufax since March 2015.
According to data from China Investment, Zheng He Capital participated in Lufax’s Series A financing in March 2015 with Ping An Innovation Capital and CDH Investments under the Ping An Group. It is understood that the A round of financing is only 485 million US dollars.
The prospectus shows that Luo Zhaohua holds a 3.4% stake in Lufax before listing (approximately 75.68 million ADS). According to the current market value, the stock market value exceeds 1.06 billion US dollars.
Although I don’t know how much Luo Zhaohua invested in that year, based on only the equity, the investment that year was about 25 million US dollars. It can be seen that Luo Zhaohua’s book value is at least US$1 billion (about 6.7 billion yuan).
Reducing holdings of Ping An Good DoctorCash 1 billion in cash
The fund manager asked many friends in the venture capital circle, and they all said that they didn’t know Zheng He Capital. However, it is such an unknown investment institution that can participate in the financing of Lufax in the A round of the infinite halo, which is imaginative.
At the same time, the fund manager looked through the information and found that Luo Zhaohua was also a non-executive director of Ping An Good Doctor, another listed company of Ping An Group.
At the end of October 2019, documents from the Hong Kong Stock Exchange showed that Ping An Good Doctor was reduced by Hero Wall Limited, which is held by non-executive director Luo Zhaohua, and sold 22,503,885 old shares at HKD 55.3 to 56.85 per share., Cash in 12.4 to 1.28 billion Hong Kong dollars (about 10.7 to 11 yuan).
According to the documents, Luo Zhaohua has no lock-up period after this transaction.
According to the interim report of Ping An Good Doctor, Luo Zhaohua originally held 46.69 million shares of Ping An Good Doctor, with a shareholding of 4.37%.
If Luo Zhaohua has not reduced his holdings since then, the total market value of his 24.19 million shares as of October 30 will reach 2.4 billion Hong Kong dollars.
In addition to the surplus in Lufax, Luo Zhaohua has nearly 10 billion surplus in the two listed companies under Ping An.
Super rich financial strategistLuo Zhaohua
Luo Zhaohua, a Hong Kong native, is known as “Hong Kong’s super-rich financial strategist”. It is said that his clients include Hong Kong real estate tycoon Lee Shau Kee, Arowana, and the actual controller of Shangri-La, Guo Henian, Hong Kong stock market sniper Liu Luanxiong and others. Among them, he is most familiar with Zheng Yutong, the late founder of New World Real Estate.
According to the Hong Kong media Next Weekly, Luo Zhaohua, from the jeans family that produces Lawman (Raptors), joined Goldman Sachs in the early 1990s after returning from studying abroad. At that time, Hong Kong and Asian wealthy people emerged. He was the first private banker trained by Goldman Sachs to serve the wealthy Chinese.
Luo Zhaohua set up his own business after leaving Goldman Sachs in 2011 and established Zheng He Capital Management. After that, he served as executive chairman of Princess Yacht South China, which was invested by Chow Tai Fook Enterprise owned by the New World family.
